Europe, Tech and War

Read the full article in ECO (in Italian)

English translation (ChatGPT):

EUROPE, TECH AND WAR

Here are our five reasons to read it.

Why doesn’t a European Google exist?

The book begins with a question: why have no technological giants emerged in Europe? In a systematic comparison between the United States, China, and Europe, Coste observes that European investments in research and development in the technology sector are far lower than those of the other two superpowers. He then identifies the structural knots weighing down the continent: market fragmentation, shortage of venture capital, weak entrepreneurial culture in high-uncertainty sectors, and excessively high costs of corporate reorganization.

The burden of restructuring costs.

One of the most concrete obstacles to technological growth in Europe, according to Coste, is precisely the high cost of restructuring that companies must face when a project fails and it becomes necessary to reduce the number of employees engaged in it. Compared with the U.S. and China, where restructurings are quicker and less expensive, in Europe they require not only more time but also more capital and more negotiations with unions and politics. This hampers the profitability of innovative projects and discourages investment, especially in high-uncertainty sectors like technology, where by nature most projects do not succeed. The result is a less dynamic ecosystem, where even good ideas struggle to find space.

Because technology means geopolitical power.

According to the author, digital infrastructure (networks, cloud, computing capacity) is now central not only to economic competitiveness but also to the survival of a democracy. Just as aircraft carriers were decisive in the Second World War, today drones, satellites, robots, guided missiles – integrated with artificial intelligence – make the difference in armed conflicts, significantly changing the logic of traditional warfare. At the same time, cyber defense is becoming ever more important to guard against foreign interference. Without an autonomous technology industry, Europe remains vulnerable and holds little influence on the global chessboard.

The author’s unique experience.

Coste has worked in industry and technology in various roles: as an official of the European Commission, adviser to French Prime Minister Lionel Jospin, executive in large companies such as Alcatel, and entrepreneur in innovative startups between New York and Europe. This trajectory allows him both to avoid the detachment from practice that sometimes affects bureaucrats and academics, and to bring a multifaceted perspective, aware of the complexity behind Europe’s lack of innovation in technology.

A useful book, now.

The war in Ukraine, China’s technological rise, the unpredictability of current U.S. leadership, new transatlantic tensions, the slowdown of European economic growth, and the advent of artificial intelligence make this book particularly relevant. Europe, Tech and War captures a key moment in European history: either the technological gap is closed, or a peripheral role is accepted. The author puts forward proposals regarding the single market, bankruptcy law, obstacles for risk-takers, incentives for those who grow, and how to create European champions. A reform agenda worth reflecting on.

The book in one sentence:

“Europe’s dependence on foreign technology, combined with China’s rapid rise in the tech sector, represents a significant threat in terms of security, jobs, living standards, and freedom. […] At the very least, Europe must prepare.”

Oliver Coste, self-published, 2022

Europe, Tech and War by Oliver Coste analyzes Europe’s technological lag as a matter of economic well-being and strategic survival. A recommended book to understand how we ended up in this situation, why it is problematic, and how to get out of it. Reading it gives the impression that the time for conferences is over.